North America Healthcare Information Technology Market growth was valued at USD 69,263.9 million in 2019 and is expected to witness 14.1% CAGR from 2020 to 2026.
Healthcare information technology is an evolving field and there has been growing adoption and development of several technologies with varying degrees of evidence pertaining to the impact of technological advancements on patient safety. Health information technology offers several opportunities such as enhancing clinical outcomes, reducing human errors, improving practice efficiencies, etc. for transforming and improving healthcare sector. In addition, an increase in number of industry players investing in healthcare information technology services for patient monitoring, diagnosis, and prevention is anticipated to propel the market growth positively.
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Artificial intelligence is anticipated to transform the healthcare practices in the forthcoming years by conducting business and clinical tasks that are currently performed by humans. Higher accuracy and speed will be the major factors driving the artificial intelligence sector growth, thereby leading to higher adoption rate. Artificial intelligence helps in providing practitioners assistance and decision support for tasks such as patient diagnosis & symptom analysis along with early determination of disease outbreaks. In addition, accelerating new drug development process along with streamlining coding patient pathways, making physician referrals and approving claims are further attributes that are propelling the market growth.
Artificial intelligence is still at early adoption stage among the patients as well as healthcare stakeholders. High adoption of artificial intelligence will depend on innovators’ capability in reducing cost, improving accuracy and technological advancement such as big data, language processing and others. Companies including Alphabet, a Google unit is implementing artificial intelligence to reduce disease burden in monitoring, diagnosis and lifestyle management. Increasing demand for advanced healthcare services, significant investment towards healthcare infrastructure development will positively impact the adoption of artificial intelligence in healthcare sector.
North America Market, By Solution
By solution, the market is segmented as radiology information systems, electronic health record, picture archiving and communication systems, computerized physician order entry, vendor neutral archives, mHealth, healthcare analytics, telehealth, supply chain management, customer relationship management, fraud management, revenue cycle management and others. Electronic health record (EHR) segment held significant market share and is projected to expand at a CAGR of 14.4% over the estimation period. EHR is becoming more prevalent in healthcare settings including office-based physician practices to enhance the efficiency and quality of care delivered as well as assist in cost reduction. EHR with technologically advanced functionality are been adopted more than EHR with less advanced functionality. Hence, the above-mentioned factors will propel the healthcare IT market growth in the forthcoming years.
North America Market, By End-use
On the basis of end-use, the market is bifurcated as healthcare payers and healthcare providers. Healthcare payers segment was valued at more than USD 27,500 million in 2019 and is anticipated to witness significant growth in the coming years. The high growth of the segment is attributed to the increasing collaborations for adoption of healthcare IT solutions coupled with high investment in development of innovative healthcare IT tools. With growing new technologies and substantial investment in digital health start-ups, these payers are considering adoption of technologies that offer greater business value. Hence, the above-mentioned factors will augment the healthcare IT market growth in the future.
North America Market, By Country
U.S. healthcare information technology market was valued at around USD 61,700 million in 2019 and will witness lucrative growth over the estimation time period. The high market size of the country in 2019 is owing to presence of highly advanced healthcare IT infrastructure and several initiatives undertaken by government associations for implementing mobile focused health apps. Numerous innovations and expansion of systematic approaches to healthcare IT have been established through The Healthcare Information and Management Systems Society (HIMSS), The American Medical Informatics Association (AMIA) along with several technical and IT standardization bodies. Hence, the aforementioned factors will augment the market growth.
Competitive Market Share
Some of the major industry players involved in North America healthcare information technology market include Allscripts Healthcare Solution, Inc. Athenahealth, Carestream Health, Cerner Corporation, GE Healthcare, McKesson Corporation, Koninklijke Philips N.V, Siemens Healthineers, SAP and others. These companies are adopting numerous organic and inorganic strategies such as new product launch, collaborations, mergers and acquisitions to maintain their market position. For instance, in June 2020, AthenaHealth launched a new EHR-embedded telehealth tool. The tool allows practitioners to conduct virtual visits without downloading of any software or third-party app. This strategy will enable company to expand its existing portfolio and maintain long-term patient relationships.
North America Healthcare Information Technology Market Background
The health information industry (HIM) has been around officially since several years to advance the standards of records created in the clinical settings. HIM trends continue to make news today due to execution of electronic health records (EHR). In the era of 1920s onward, paper medical records were steadily maintained however, the advancing technology of the ‘60s and ‘70s introduced the beginning of a new system. The ‘80s era formed massive jumps in healthcare software development. In 2000, a wave of patient deaths and medical errors caused by the healthcare providers transformed the search for a viable Electronic Health Record system. Electronic health records allowed providers to deliver enhanced care and make better decisions while reducing the incidence of medical error by improving the accuracy and clarity of medical records. In 2004, President George W. Bush called for computerized health records and post which an EHR revolution began. Present-day healthcare organizations are applying functional EHR systems with more intensity than ever across the globe.